Trinidad Drilling Ltd (TDG.TO)

Likes a lot of the drillers and everything that surrounds oil, as opposed to companies that are exploring and producing oil. Imperative that if you are going to buy a driller, they have to have an operation in the US like this one has. Earnings report was really, really good last quarter. Has a real growth profile, they know where they are going and have been around for a long time.

Middle of the pack for him. Will continue to do well. They are good at what they do, specialty drilling. They are needing more specialty drilling to get the gas that is there. Will go higher over the next 12 months.

Rigs in be moved from one area to another. As much as 60% of the contracts are long-term “take or pay” and are positioned in high demand areas. Recently entered Saudi Arabia on a joint venture.

Has gone through a very heavy equipment build out in the last few years which is coming close to an end. Generating free cash flow and 2014 is going to be better. The new joint venture with Halliburton (HAL-N) will allow them to get into the global space. Now have contracts for Mexico and gives them opportunity to get into Saudi Arabia. Yield of 2% and feels there is a lot of room to increase distributions in the next 2 years.

Had an announcement of a deal with Halliburton (HAL-N) lately and the stock popped a little. It is now a little bit higher risk because of that. Although he owns a little bit of this, he would prefer Essential Energy (ESN-T) that has a yield of about 4%.

(Market Call Minute.) There is a lot of activity going on in the Western Canadian basin with all the drilling, delineation that is going on for the LNG project as well as deep wells. Feels utilization capacity will increase.

(Market Call Minute.) One of the best of the drillers but he doesn’t think drilling is the place to be.

Good solid company but not his pick of the oil and gas sector. It is in a period of seasonal strength and he thinks it will go higher and will do well until January or February.